Tax Alert - October 2020
Tax Alert - October 2020
Extension of Amnesty for Tax Filing and Payment for Three Months
Summary
The Minister of Finance has announced the extension of the waiver of penalties for all tax filing and payment for a further three months, until 31 December 2020, as part of the effort to mitigate the impact of the COVID-19 pandemic on the economic activities of the Kingdom.
In Detail
The Minister of Finance announced, through a Ministerial Decision, that the amnesty for tax filing and payment will be extended until 31 December 2020. This is an extension of the waiver of penalties for Zakat, Income Tax, Withholding Tax, VAT, and Excise Tax, which ran from 18 March 2020 until 30 June 2020, and which had been previously extended until 30 September 2020.
Amnesty for objecting taxpayers
The Ministerial decision clarified that the General Authority of Zakat and Tax (GAZT) will waive penalties for taxpayers who raised objections against GAZT’s assessments, on the condition that no final decision had been made by the relevant authority, which is the General Secretariat of Tax Committees (GSTC) or the Board of Grievances, as we assume. Penalties will be waived for the objecting taxpayers if they commit to paying the due tax amount or if they request an installment plan within the new deadline which ends on 31 December 2020.
Exclusion from amnesty
The decision made clear that the amnesty does not include a waiver of penalties incurred due to tax evasion.
Please refer to our previous tax alerts on the subject through the links provided below. Our teams are available in case you need any clarification or further assistance.
Tax Alerts
March 2020 – Postponement of Tax Filing and Obligations for Three Months
April 2020 – Measures to Support Taxpayers During the Covid-19 Pandemic
August 2020 – Extension of Waiver of Penalties for Tax Filing and Payment for Three Months
Get in touch
Riyadh Office
Wadih Abu Nasr Head of Tax, KSA and Levant |
Nick Soverall Senior Director, Head of Indirect Tax, KSA |
Peter Bourke Senior Director, M&A/ Int’l Tax |
Mohamed Araji Senior Director, FS/ Tax Reimagined |
Ali Sainudheen Director, Tax & Zakat Compliance |
Stefan El Khouri Director, Transfer Pricing |
Pascal Cange Senior Tax Advisor, Customs and International Trade |
Youssef Aoun Director, Tax technology Lead |
Jeddah Office
Mohamed ElSwefy Senior Director, Family Office & Private Clients |
Faisal Tanvir Director, Tax & Zakat Compliance |
Salam Eido Director, Indirect Tax |
Khobar Office
Tareq Al Sunaid Partner, Head of Domestic Tax |
Mohammad Kamran Sial Senior Director, Tax & Zakat Compliance |
Anil Bahl Director, Khobar |
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